Community Facilities Districts

A Community Facilities District (CFD) is a special tax district provided in State Law that funds public improvements and on-going services within an identified area.  Parks, streets, sewer improvements, and public safety services are some of the public improvements and services that may be financed by a CFD.


Roas.jpg

History of Community Facilities District

In 1978, Proposition 13 was enacted by Californians, which limited the ability of many public agencies to finance new projects by limiting the tax rate on real estate to 1%, changing the value on property to their 1975 value and limiting the annual increase in value to 2% (except for a change in ownership). General Obligation Bond passage cannot fill the funding gap. Although General Obligation Bonds continued to be passed at the State and local levels, the need for funding could not be filled by this source of funds as Californians began to ask for new growth to pay for itself. In 1982, Senator Henry Mello and Assemblyman Mike Roos spearheaded the passage of the “Mello-Roos Community Facilities District Act of 1982.” This Act authorized local governments and developers to create Community Facilities Districts (CFDs) for the purpose of selling taxexempt bonds to fund public improvements and collect revenues to pay for public improvements. Also authorized is the collection of revenue to fund services and maintenance.


Establishing a Community Facilitates District

EDA’s Community and Cultural Services Division establishes Community Facilities Districts (CFDs) utilizing Government Code 53311-53368-3 for maintenance of facilities and services. 

Requirements of creating a CFD include, but not limited to: Application (click here), Petition, Resolution of Intention including Rate and Method of Apportionment and Boundary Map, Resolution of Formation, Public Hearing, majority protest process, and recordation of Notice of Special Tax. Prior to the formation of a CFD, it must be approved by a two-thirds margin of the qualified voters within the proposed district boundaries.  If there are fewer than 12 registered voters within the proposed boundaries, the vote may pass by the current landowners. 

If you are interested in establishing a CFD, please submit a Special District Application and return to:  Riverside County Economic Development Agency, CCSD, Special District, Leni Zarate, lzarate@rivco.org at 3404 10th Street, Ste. 400, Riverside, CA 92501.


Sequence of Events

With a registered voter CFD, or a landowner vote with 100% of the sign waivers of the election processes, it is possible to complete the election with 6 months. 1-3 must to Resolution of Intention and 3 additional months to Resolution of Formation and ballot protest.

Every project is different and may contain circumstances that change the sequence of events for formation of a Community Facilities District.  With that disclaimer in mind, consider that the key step in the timing of any Mello-Roos proceedings is producing all required documents during the application process.  The time to get necessary information can take anywhere from a few days to a few years.

Click here for the sequence of events for CFDs.


Current Projects

CFD 2016-1M TR 36390 (CITRUS HEIGHTS)

Term:  The Special Tax shall be levied annually in perpetuity unless terminated earlier by the County.

Finances:  Maintenance services for street lights maintenance including energy charges, operation, maintenance, and administrative costs of streetlights, landscape maintenance, including streetscape (County rights-of-way) areas specifically identified within the CFD and the landscape maintenance which may include, but is not limited to, all landscaping materials such as, ground cover, shrub, trees, plants, irrigation, trash removal, weed control, water costs, and other abatement's, electricity, repair/replacement and inspection.

The Notice of Special Tax: The annual levy is $396.80 per Single Family Property for Fiscal Year 2016-2017 however, commencing July 1, 2017, this amount shall be increased annually based on the percentage increase in the Consumer Price Index with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%). The Notice of Special Tax Lien has been recorded for the above referenced project.  Recording information is as follows:  8/1/16 Document # 2016-0323893.

Tract: 36390


CFD 2017-1M (CONESTOGA)

Term: The Special Tax shall be levied annually in perpetuity unless terminated earlier by the County.

Finances: Costs associated with (i) Maintenance, administration and inspection of the stormwater facilities and BMPs including water quality basins, fossil filters, basin forebays, and any other NPDES/WQMP/BMP related devices as approved by the CFD. The maintenance may include, but is not limited to drainage systems, weed control and other abatement's, repair/replacement and inspection. Inspection is inclusive of scheduling, travel time, visual inspection process and procedures, GPS location recording, reporting by device, annual reporting, visual inspection for functionality, vegetated as designed, irrigation is complete and in working order, noting any of the following: any deficiencies, erosion, trash, silt, sediment, structural deficiencies. Maintenance is inclusive of repair or replacing any of the items noted as deficient or needing to be corrected to not be deficient. Administration is inclusive of quality assurance and control of inspection and maintenance, general contract administration, including phone calls and procurement of goods and services (ii) Traffic signals maintenance including energy charges, operation, maintenance, and administrative costs of traffic signals within the CFD (iii) Monument maintenance and administration that may include but is not limited to landscaping materials, lighting, electricity, repair/replacement and inspection, and removal of graffiti on monuments.

The Notice of Special Tax: Has not been recorded.  The Resolution of Intention was approved on March 7th, 2017 by the Board of Supervisors. The Proposed annual levy is projected to be $250 per Single Family Property for Fiscal Year 2017-2018 however, commencing July 1, 2018, this amount shall be increased annually based on the percentage increase in the Consumer Price Index with a maximum annual increase of sic percent (6%) and a minimum annual increase of two percent (2%). The Notice of Special Tax Lien has been recorded for the above referenced project. Recording information is as follows:  4/19/17 Document # 2017-0156730.

Tracts 30322 & 31632


CFD 2017-2M (Bella Vista II)

Term: The Special Tax shall be levied annually in perpetuity unless terminated earlier by the County.

Finances: Costs associated with (i) Maintenance, administration and inspection of the stormwater facilities and BMPs including water quality basins, fossil filters, basin forebays, and any other NPDES/WQMP/BMP related devices as approved by the CFD. The maintenance may include, but is not limited to drainage systems, weed control and other abatement's, repair/replacement and inspection. Inspection is inclusive of scheduling, travel time, visual inspection process and procedures, GPS location recording, reporting by device, annual reporting, visual inspection for functionality, vegetated as designed, irrigation is complete and in working order, noting any of the following: any deficiencies, erosion, trash, silt, sediment, structural deficiencies. Maintenance is inclusive of repair or replacing any of the items noted as deficient or needing to be corrected to not be deficient. Administration is inclusive of quality assurance and control of inspection and maintenance, general contract administration, including phone calls and procurement of goods and services (ii) Traffic signals maintenance including energy charges, operation, maintenance, and administrative costs of traffic signals within the CFD (iii) Monument maintenance and administration that may include but is not limited to landscaping materials, lighting, electricity, repair/replacement and inspection, and removal of graffiti on monuments.

The Notice of Special Tax: Has not been recorded.  The Resolution of Intention was approved on March 7th, 2017 by the Board of Supervisors.  The Proposed annual levy is projected to be $2,981 per Single Family Property for Fiscal Year 2017-2018 however, commencing July 1, 2018, this amount shall be increased annually based on the percentage increase in the Consumer Price Index with a maximum annual increase of sic percent (6%) and a minimum annual increase of two percent (2%). The Notice of Special Tax Lien has been recorded for the above referenced project. Recording information is as follows:  4/19/17 Document # 2017-0156731

Tract 36894


CFD 2017-3M TR 36536 (Tierra Del Rey)

Term: The Special Tax shall be levied annually in perpetuity unless terminated earlier by the County.

Finances: Maintenance services for street lights maintenance including energy charges, operation, maintenance, and administrative costs of streetlights, landscape maintenance, including streetscape (County rights-of-way) areas specifically identified within the CFD and the landscape maintenance which may include, but is not limited to, all landscaping materials such as, ground cover, shrub, trees, plants, irrigation, trash removal, weed control, water costs, and other abatement's, electricity, repair/replacement and inspection.

The Notice of Special Tax: Has not been recorded.  The Resolution of Intention is scheduled for May 23, 2017 by the Board of Supervisors.  The Proposed annual levy is projected to be $1.561 per Single Family Property for Fiscal Year 2017-2018 however, commencing July 1, 2018, this amount shall be increased annually based on the percentage increase in the Consumer Price Index with a maximum annual increase of sic percent (6%) and a minimum annual increase of two percent (2%).  Once the Notice of Special Tax has been recorded a copy will be available with the recording information to be provided.

Tract: 36536